Securities and Futures Act 2001 · 2020 Revised Edition · Part 5 · Books, Customer Assets and Audit
108. Reports by auditor to Authority in certain cases
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Where, in the performance of his or her duties as an auditor for a holder of a capital markets services licence, an auditor becomes aware of —
auditor
“auditor” means a public accountant who is registered or deemed to be registered under the Accountants Act 2004 and, in Division 1 of Part 13, when used in relation to an entity not being a company, includes —(a)a person who is duly registered, licensed, approved or otherwise authorised to practise as an auditor (such practice to include the issue of any opinion, report or other document on the audit of any financial statement) —(i)under the laws of the place where the entity is formed or constituted; or(ii)under the laws of the place of his or her practice, if the auditing standards that are or will be applied to the financial statements of the entity are —(A)auditing standards commonly applied in that place; or(B)international auditing standards (by whatever name called); or(b)such other person as the Authority may approve in any particular case to be an auditor for such entity;
any matter which, in his or her opinion, adversely affects or may adversely affect the financial position of the holder to a material extent;
any matter which, in his or her opinion, constitutes or may constitute a contravention of any provision of this Act or an offence involving fraud or dishonesty; or
any irregularity that has or may have a material effect upon the accounts, including any irregularity that may affect or jeopardise the moneys or other assets of any customer of the holder,the auditor must immediately thereafter send —
customer
“customer” means —(a)in relation to a holder of a capital markets services licence —(i)for the purposes of Parts 4, 6, 7 and 15, a person on whose behalf the holder carries on or will carry on any regulated activity; or(ii)for the purposes of Part 5 —(A)a person on whose behalf the holder carries on or will carry on any regulated activity; or(B)any other person with whom the holder, as principal, enters or will enter into transactions for the sale or purchase of capital markets products,but does not include such person or class of persons as may be prescribed for the purposes of this sub‑paragraph; or(b)for the purposes of Part 3 and the definition of “user”, a person on whose behalf a member of an approved exchange, an approved clearing house, a recognised clearing house or a recognised market operator (as the case may be) carries on any activity regulated under this Act, but does not include —(i)the member, with respect to dealings for the member’s own account;(ii)any officer, director, employee or representative of the member; or(iii)a related corporation of the member, with respect to accepted instructions to deal for an account belonging to, and maintained wholly for the benefit of, that related corporation;
a report in writing of the matter or irregularity to the Authority; and
where the holder is a member of an approved exchange, a copy of the report to the approved exchange.
member
“member”, in relation to an approved exchange, a recognised market operator, an approved clearing house or a recognised clearing house, means a person who holds membership of any class or description in the approved exchange, recognised market operator, approved clearing house or recognised clearing house, whether or not the person holds any share in the share capital of the approved exchange, recognised market operator, approved clearing house or recognised clearing house, as the case may be;